A “hybrid” appraisal is a new name for where the property inspection is separated from the analysis and appraiser’s certification. It is faster and cheaper and. . . This is Part 5 of a (soon to be, so far) six part discussion of Hybrid Appraisals. Part One, Two, Three, and Four are behind these links. […]
An opinion of value is just that. Everyone has one. Asset value is wanted for one of three reasons: to measure risk, forecast profit, or to achieve fairness. Mostly the clients are collateral lenders, investors, and regulators/litigators. An appraisal is an opinion of value by an appraiser acting in appraisal practice. There are other opinions […]
Price indexing is a result of a good market analysis. What is it, and how can it help? Price indexing solves many of the problems that the 1004mc was intended to do. It is not difficult to do. The result looks something like this: If you do this using the recommended specific procedure, you will […]
And change it does. The biggest changes slip in almost without notice. USPAP recognizes change. In fact, Standard 1-1 says: …the principle of change continues to affect the manner in which appraisers perform appraisal services. It specifically recognizes change in cost, construction, marketing, law, lending all lead, or should lead to corresponding changes in appraisal […]
What is an adjustment? In a prior blog, we noted that no one seems to really know! We looked at the AI Dictionary of Real Estate Appraisal. We looked at The Appraisal of Real Estate (TARE). And we looked at the “Uniform” standards. All these sources tell us that adjustments are important and should be […]
Hybrid Appraisal Part VII: Is it possible that Hybrid appraisals can benefit us all!? Consumer heaven? Taxpayer benefit? Public trust? Hybrid appraisals are touted as being a “modernization” of the appraisal process. Simply put, a non-appraiser does the inspection of the property, there is no physical assessment of the neighborhood nor any of the comparables. […]
Credible— USPAP (Uniform Standards of Professional Appraisal Practice) says an appraisal must be credible. The word ‘credible’ is used some 82 times in the Standards themselves (although used repetitively in the same context using identical words most of those times). Then an additional some 103 times in the Advisory Opinions, mostly re-quoting the first 82 […]
The body of a letter to the U.S. House Committee on Financial Services about systems reform. Appraisal reform or Appraisal industry reform? It is critical to understand that ‘appraisal’ does not equal ‘valuation’, or risk analysis, or anything else. It is a precise definition of a nebulous product. The current U.S. House Committee on Financial […]
Graphs serve several purposes. There are two main mindsets in building graphs. One of them seems completely ignored in traditional appraisal ‘procedures.’ The old way of appraisal is to gather 4 or 5 comparables. They are “competitive” and “similar”. We are told that if they are competitive and similar, they make ‘ok’ comps. Ok comps […]
The future is here now. How can an average appraiser prepare? Some practical views. There are a lot of questions here. How are things changing? Will my knowledge be of any value? Is there any hope at all? Will clients require something different? If I am to survive, what do I need to do different […]
Things become obsolete because they fail to keep up. USPAP (Uniform Standards of Professional Appraisal Practice) has served us well. And things have changed. And times have changed. Appraisal standards go back quite a ways, primarily by the forerunners of today’s Appraisal Institute. Also, assessor groups sought and created standards or procedures for mass appraisal […]
If we had an Appraisal Inspection Standard, how would it look? To frame this question, we need to look at what we have today regarding inspections, and what is really needed in the world. Let’s look then under common United States specifications. What we have today is left entirely up to the appraiser. The only […]
A student recently asked this question (algorithm) in a Stats, Graphs, and Data Science1 class. It is an important concept for the future of asset analytics. Yet the class did not really explain or even define the word. Is it about thinking? About computation? Or is it like a new approach to value? To explore […]
An Algorithm can leverage appraiser market knowledge and experience. Algorithm combines computer power with informed human brain power. Algorithms are the key to the future of valuation work. Let’s continue on from What is an Algorithm? Part 1. The future appraiser must own competencies in the use of models, algorithms, visualization, and the delivery of […]
We seem to be hearing stuff about risk recently. Why? Back in the old days, before internet but after the wheel – It was my challenge as a new appraiser to scratch together four or five comps, then put three of them on a form, or perhaps even all five on a table. We called […]